&$(#$)#! -- the reason for anemic job growth is the first depression since 30s. The depression that was handed to Obama by GWB.
Another reason is obstructionism by GOP, which blocked the Jobs Act and any other measure to stimulate the economy.
But Bush's economic policies did not cause the 2008-2009 recession. The root cause of the recession was misguided federal intervention in the housing market and federal mishandling of interest rates and the money supply.
From 2000 to 2007, Freddie and Fannie secured or funded over $1 trillion in subprime loans, most of which went to people whose credit would not have qualified them for home ownership in previous years. Those unsound loans were then bundled into the toxic assets that caused the financial crisis, which in turn caused the recession.
Before the federal government began applying pressure on lending institutions to make more subprime loans, such loans were barely 1% of new loans, but by 2007 they were 20% of new loans.
Bush and the Republicans tried 5 times--yes, 5 times--to impose sane regulations on Freddie and Fannie to stop them from their reckless course, but each time Democrats played the race card and the class-warfare card and accused Republicans of trying to keep poor people and minorities from owning homes.
You can watch some of those Congressional debates on YouTube, if you have any doubts about this.
As for GOP "obstruction" in blocking the second stimulus bill, the so-called "Jobs Act," good gravy, what about the fact that the first stimulus bill clearly failed? Why would we want to waste more money on failed "stimulus" measures when the first round of "stimulus" spending proved to be a huge waste of money?
The first stimulus bill was rammed through with the excuse that it was desperately needed to keep unemployment from going over 8%. We all know what happened to the unemployment rate after the first stimulus was passed: it went up, not down, and it has stayed near 8% ever since (last month it stood at 7.8%).
The average unemployment rate for Bush's 8 years was below 6%.
btw mikey your bull shit about the sub prime mess has been debunked so many times that it is painful to read your ignorance.
IT HAS???
Well how about this "bull shit"???
New study concludes that the Community Reinvestment Act
‘clearly’ did lead to risky lending
James Pethokoukis |
December 12, 2012, 9:50 am
"Our empirical strategy compares lending behavior of banks undergoing CRA exams within a given census tract in a given month to the behavior of banks operating in the same census tract-month that do not face these exams.
We find that adherence to the act led to riskier lending by banks:
in the six quarters surrounding the CRA exams lending is elevated on average by about 5 percent every quarter and loans in these quarters default by about 15 percent more often. These patterns are accentuated in CRA-eligible census tracts and are concentrated among large banks.
The effects are strongest during the time period when the market for private securitization was booming. Â…
[URL="http://www.aei-ideas.org/2012/12/new-study-finds-concludes-that-the-community-reinvestment-act-clearly-did-lead-to-risky-lending/
NOW idiot to put it into simple words you can understand!!
The above experts studied loans made under CRA duress and loans NOT under CRA.
They found lending INCREASED under CRA pressure and the loans made under CRA pressured defaulted 15% MORE then loans not under CRA pressure!
NOW for an even more fundamental lesson!
BANKS have FDIC insurance I am sure you know!
What do you think the FDIC auditors said when they saw these CRA forced loans? Did the examiners not consider them when penalizing the banks that made them?
Of course they did! So the banks complained and guess who came to the rescue??? FANNIE/FREDDIE! And so we have the Bush administration
LAUGHED AT BY Democrats Frank and Dodd after 17 times trying to get Fannie/Freddie fixed!
"Over the past six years, the President and his Administration have not only warned of the systemic consequences of failure to reform GSEs but also put forward thoughtful plans to reduce the risk that either Fannie Mae or Freddie Mac would encounter such difficulties. President Bush publicly called for GSE reform at least 17 times in 2008 alone before Congress acted. Unfortunately, these warnings went unheeded, as the President's repeated attempts to reform the supervision of these entities were thwarted by the legislative maneuvering of those who emphatically denied there were problems. Many prominent Democrats, including House Finance Chairman Barney Frank, opposed any legislation correcting the risks posed by GSEs.
* House Financial Services Committee Chairman Barney Frank (D-MA) criticized
the President's warning saying:
"these two entities - Fannie Mae and Freddie Mac - are not facing any kind of financial crisis .The more people exaggerate these problems,
the more pressure there is on these companies, the less we will see in terms of affordable housing."..
(Stephen Labaton, "New Agency Proposed To Oversee Freddie Mac And Fannie
Mae," New York Times, 9/11/03)
* Senate Committee on Banking, Housing and Urban Affairs Chairman Christopher Dodd also ignored the President's warnings and
called on him to "immediately reconsider his ill-advised" position. (Eric Dash, "Fannie Mae's Offer To Help Ease Credit Squeeze Is Rejected, As Critics Complain Of Opportunism," New York Times, 8/11/07)